I solved this issue by first efiling the Federal 1065 alone, which went through without any problem. Once the federal was accepted, I went to the turbotax website (I had help from an Intuit tech person who guided me to the file download page. I was unable to find it on my own) and downloaded the State software, installed it and was able to transmit the State (NJ in my case) without issue. For some reason, even though I (and everyone here) downloaded and installed all of the updates, the State updates don't seem to be replacing the previous state version, hence the "software is not up to date" error message.
